With the economy back on its way up many people who were burned from the global financial crisis are now looking to cover their losses. One way of doing that is by trading the financial markets. However that is such a broad concept. Which market should I trade and how deep should I go in?
Of course there is no one right answer to that question but there is one safe one. While Forex trading leaves much room for tremendous profits the risk is also very large. Other markets such as the Stock Market require a very big capital in order to get started.
Binary Options trading offers you the ability to know up front just how much you could profit in the best case scenario while being aware of the losing possibilities from the get go. With Binary Options there are no big surprises.
So how do you get started? Just like all other types of trading you will need to choose a platform that will best meet all of your trading needs.
In the following you can find a list of features/characteristics you should look out for in a Binary Options trading platform:
- Web-Based Platform: There is no denying that there are Traders who will debate this point but using a platform locally on your computer might raise some problems. If your trading platform is online it is accessible to you wherever you are. You can trade from a friend’s computer or on the go. If your Binary Options trading platform requires a download not only are you stuck trading from that specific computer extra software on your computer is never a good thing. With industry giants like Google, Apple, and Microsoft which are adopting the trend of Cloud Computing there is no reason your Binary Options Trading platform should not also make use of this new trend.
- Minimal 65% to 70% Returns: The way Binary Options work is that you make a forecast about the direction of the instrument’s value at the expiry date. If the prediction is accurate you can make big profits. However the precise numbers depend on the broker/platform which you use. It is important to look out for returns of at least 65% to 70% on your investment. This means if you make a Call Option of $100 and the price indeed increases you will get $170 assuming the return of that Binary Option is 70%.
- Payback on Out of Money: The downside of Binary Options is of course that the smallest mistake even that of one cent will equal a total loss of your investment. That is unless your platform offers payback on Out of Money in which case you will lose most of your investment but will remain with at least some capital and in the most cases up to 15%.
- Multiple Currencies: One of the many advantages of Binary Options is that you can benefit from the various markets such as Forex or commodities while enjoying a very minimal risk. Given the flexibility of the Binary Options market it is important to ensure that you get the maximum flexibility out of your platform as well. Take Forex for example. It is important that your Binary Options trading platform supports as many Forex pairs as possible especially the majors. This is a clear indication of the seriousness of the platform. A Binary Options platform which supports a low number of currencies is not a platform which you should use for your trading.
- Security: This is not unique to Binary Options trading but it is important that your trading platform be secure. You can check the security level of the platform by examining its encryption. You should be looking for a platform with a 128 bit SSL encryption from a market leading security provider. Once again this is a clear indication of what Kind of platform you are dealing with.
In conclusion Binary Options trading platforms have a lot in common with other trading platforms including Forex but there are also some unique features which should exist in your platform. Other characteristics which are important should be a good client service and simple deposit and withdrawal processes. If a broker/platform is missing one of the above characteristics it shoould tell you to keep looking for a better platform.